For the promotion of entrepreneurship

Regulations: Art. 8 Revised Text of the legal provisions of the Community of Castile and Leon on taxes of its own and those ceded by the State, approved by Legislative Decree 1/2013, of September 12.

Amount and maximum limit of the deduction

• 20 percent of the amounts invested during the year in the acquisition of shares or interests as a result of agreements to establish companies or increase capital in the commercial companies detailed below.
• The maximum deduction amount will be 10,000 euros, both in individual and joint taxation .

Note: Taxpayers entitled to the deduction must complete the section "Additional information on the regional deduction for investment in the acquisition of shares and equity interests in new or recently created entities" in Annex B.7 of the declaration, in which, in addition to the amount of the investment entitled to the deduction, the NIF of the newly or recently created entity must be stated and, if applicable, that of the second entity, indicating the total amount of the deduction for investments in newly or recently created companies.

Requirements and other conditions for the application of the deduction

To apply the deduction, the following requirements and conditions must be met:

• Destination of investment: Acquisition of shares or interests as a result of agreements to form companies or increase capital in the following companies:

  - Public limited companies, limited companies or labour companies when the company allocates the financing received to investment projects carried out in the territory of Castilla y León.

  - Companies whose sole corporate purpose is the contribution of capital to public limited companies, limited companies or labour companies whose registered office and tax domicile are located in Castilla y León, provided that the following conditions are met:

  1. That the company whose shares and interests are acquired uses the financing received within six months to provide capital to a public limited company, a limited company or a labour company whose registered office and tax domicile are located in Castilla y León.

     For these purposes, the percentages of a minimum of 1% and a maximum of 40% of the company's capital required to apply the deduction will be computed with respect to the total capital contribution.

  2. That the public limited company, limited liability company or labour company whose shares and interests are acquired meets the employment generation requirement set out below and does not reduce its workforce in Castilla y León.
• Location of registered office and tax office : Public limited companies, limited companies or labour companies must have their registered office and tax domicile in the Community of Castile and León .
• Percentage of capital acquired: Only the acquisition of shares or participations for a minimum amount of 0.5% and a maximum of 45% of the capital of company , which remain in the purchaser's assets for at least three years, will be eligible to apply this deduction.

• Employment creation: Companies in which shares or interests are acquired must increase in the year in which the investment is made or in the following year and compared to the previous year:

  • Their global workforce, in terms of people/year regulated by labor regulations, and maintain this workforce for at least three years, and/or
  • The number of contracts signed with self-employed workers who are economically dependent on the company, and who maintain these contracts for at least three years, and/or
  • The number of people who join the self-employed workers' scheme who are collaborating family members of share or participation holders, and who remain registered for at least three years.

• Maximum investment: The maximum investment of the project that is computable for the application of the deduction will be the result of adding the following amounts:

  • 100,000 euros for each increase of one person/year in the workforce.
  • 50,000 euros for each contract with self-employed workers who are economically dependent on the company.

  • 50,000 euros for each registration of self-employed workers who have the status of collaborating family members.

    The concept of collaborating family member is included in article 35 of Law 20/2007, of July 11, of the Statute of Self-Employment, or the regulation that replaces it.

• Formal requirements: In order to apply this deduction, it will be necessary to obtain a certificate issued by the entity whose shares or interests were acquired, which states compliance, in the tax period in which the acquisition took place, with the requirements relating to the destination of the investment and, where applicable, compliance with the specific conditions, the location of the registered office and tax domicile, the percentage of capital acquired and finally the requirement for job creation.

Loss of the right to the deduction made

Regulations: See art. 10 of the Consolidated Text of the legal provisions of the Community of Castile and Leon on own and transferred taxes.

When, in tax periods subsequent to the period of application, the right to the deductions made is lost, in whole or in part, the taxpayer will be obliged to add to the autonomous net tax rate accrued in the year in which the deduction requirements were not met, the amounts unduly deducted, plus the late payment interest referred to in article 26.6 of Law 58/2003, of December 17, General Tax Law.